The rupee resumed lower at 62.40 per dollar compared with the previous close of 62.31 at the interbank foreign exchange market. It hovered in a range of 62.43 to 62.34 and was quoted at 62.42 per dollar at 1045 hrs.
Banks and importers sought to increase their dollar positions, a forex dealer said. Capital outflows from foreign funds also affected market sentiment as foreign institutional investors sold shares worth a net Rs 318.91 crore yesterday.
In New York, the dollar fell against other major currencies yesterday after a December reading on the US services sector came in below market expectations.
In the local stock market, the benchmark 30-share Sensex dropped 106.61 points, or 0.51 per cent, to 20,680.69 at 1030 hrs.